Nintendo president says he won’t resign, hints at move to mobile

Seven year ago, Nintendo was on top of the world with Wii. Today, Wii U sales are in freefall, but the storied videogame maker says it’s committed to turning around its strategy.

Bloomberg News/Landov

Satoru Iwata, president of Nintendo.

“There will be no management shake-up in the short term,” Nintendo President Satoru Iwata told reporters Friday during a news conference in Osaka, Japan, where he apologized to shareholders for the company’s dismal forecast tied to weak sales of its flagship Wii U game console.

The company slashed its earnings forecast for the year ending in March, saying it expects its third consecutive annual operating loss. It cut its Wii U sales guidance by almost 70%.

As gamers move on to mobile devices and more integrated experiences on Sony PlayStation and Microsoft Xbox One consoles, Nintendo
/quotes/zigman/195847/realtimeJP:7974 has some catching up to do. “We are thinking about a new business structure” that could incorporate gaming on smartphones, Iwata said at the news conference, according to media reports.

The company has long ignored the fast-growing smartphone market even though critics say games would translate well to mobile. The Wii U even comes with a tablet controller, so new games are being designed for smaller screens. And they certainly have enough nostalgia to leverage with “Super Mario Brothers,” “Legend of Zelda” and “Donkey Kong.”

A mobile strategy sounds promising, but some wonder if it’s too late and “Game Over” already.

Story Conversation

About The Tell

The Tell is MarketWatch’s fast and engaging look at trends and themes in the day’s markets. Drawing on our reporters, analysts and commentators around the world, as well as selecting the best of the rest online, The Tell is all about the pulse of the markets through news, insight and strategic information to help you make the best investing decisions. Got a tip? Tell us at TheTell@MarketWatch.com